Maximum Brokerage Charges

stocksplacement · #1 7th August 2010, 02:44 PM

1.I would like to know if the authorities like SEBI/BSE/NSE has laid down rules to various Brokerage House for maximum brokerage charges or not.

2.It seems the brokerage houses charge various charges apart from the brokerages they promise the investors, apart from the NDSL/CDSL charges, penny stock buy charges extra, minimum brokerages, etc. Can we know whether SEBI or other authorities have laid down some rules or other and the link to such

3.Is there a maximum brokerage charge applicable or not. who regulates these brokers like indiainfoline, indiabulls, etc.

4.I believe apart from me, this will be helpful to other investors who would like to open account.

anuragmunjal · #2 7th August 2010, 02:49 PM

hi

The maximum brok.charges allowed by sebi is 2.5%. no broker can charge more than this.
but this does not make sense in today's scenario as all the brokers are charging much less than this

regards

stocksplacement · #3 7th August 2010, 08:19 PM

Quote:

Originally Posted by anuragmunjal

hi

The maximum brok.charges allowed by sebi is 2.5%. no broker can charge more than this.
but this does not make sense in today's scenario as all the brokers are charging much less than this

regards

Is there any website where all these details are there for the investors to check. As we know, there is a KYC where the brokerages take the full details about the clients but as far as brokerages are concerned, there is no one form where all the details of brokerages, minimum brokerages are there. Most of the investors find out when they start trading. that such and such charges are there.

stocksplacement · #4 7th August 2010, 08:30 PM

In Angel, there is one charges as follows:

1. Deliveries/Debit Transaction
a) Within Angel -For Trader it is Rs.11/-ISIN and for Investor it is Rs.11/- ISIN
b) Outside Angel -For Trader it is Rs.16/- ISIN and for Investor it is Rs.21/ ISIN

I am not able to understand the above, what does it mean?

2. Charges for applying for certain corporate benefits (e.g. Rights Issue, Buy back, etc) on behalf of clients for shares held with Angel - Rs.11/- Request.

What does this mean?

3. For Account Statement, Angel has mentioned in the Agreement that they will charge extra for daily/monthly/quarterly, etc. - Can someone let me know how much they charge.

stocksplacement · #5 7th August 2010, 09:41 PM

Guys,

This is SEBI website.

Go through this website if you want to open a demat account with broker or after opening an account if for any complaints.

stocksplacement · #6 27th August 2010, 11:22 PM

Quote:

Originally Posted by anuragmunjal

hi

The maximum brok.charges allowed by sebi is 2.5%. no broker can charge more than this.
but this does not make sense in today's scenario as all the brokers are charging much less than this

regards

Arunagmunjal,

Above you have mentioned that maximum brokerages charges allowed by SEBI is 2.5% but the fact is many brokerages charges more than 2.5% on stocks below Rs.100/-.

I have been told by Angel that for stocks below Rs.80/- the charges is 0.04 per share, which means that if i buy 10000 shares, it will be 10000 x 0.04 paisa per share which is Rs.400/- where as if i calculate 10000 shares by 2.5%, the maximum Angel should be charging me is Rs.250/- so in this case should i be complaining to SEBI or not?

anuragmunjal · #7 28th August 2010, 11:18 AM

Quote:

Originally Posted by stocksplacement

Arunagmunjal,

Above you have mentioned that maximum brokerages charges allowed by SEBI is 2.5% but the fact is many brokerages charges more than 2.5% on stocks below Rs.100/-.

I have been told by Angel that for stocks below Rs.80/- the charges is 0.04 per share, which means that if i buy 10000 shares, it will be 10000 x 0.04 paisa per share which is Rs.400/- where as if i calculate 10000 shares by 2.5%, the maximum Angel should be charging me is Rs.250/- so in this case should i be complaining to SEBI or not?

hi..

there seems to be sumthing wrong with your calculation. if u buy 10000 shares@ Rs.10/- total value of ur transaction is 10000* 10= 100000/-
2.5 % of 100000 is Rs.2500/-
if ur broker is charging u .04% u will pay Rs.40/- as brokerage
even if ur broker is charging u .4% and not .04% u pay Rs.400/- as brokerage.
In both cases he is well within the maximum 2.5% brokerage band.

regards

Anurag

stocksplacement · #8 28th August 2010, 12:50 PM

Quote:

Originally Posted by anuragmunjal

hi..

there seems to be sumthing wrong with your calculation. if u buy 10000 shares@ Rs.10/- total value of ur transaction is 10000* 10= 100000/-
2.5 % of 100000 is Rs.2500/-
if ur broker is charging u .04% u will pay Rs.40/- as brokerage
even if ur broker is charging u .4% and not .04% u pay Rs.400/- as brokerage.
In both cases he is well within the maximum 2.5% brokerage band.

regards

Anurag

Anuragmunjal,

Sorry, you are correct, but can they charge different rate for penny stocks below Rs.100/- value because as per NSE or BSE, they do not make a differenciation when they give brokerage charges to Angel or other Broking Site.

anuragmunjal · #9 28th August 2010, 01:02 PM

Quote:

Originally Posted by stocksplacement

Anuragmunjal,

Sorry, you are correct, but can they charge different rate for penny stocks below Rs.100/- value because as per NSE or BSE, they do not make a differenciation when they give brokerage charges to Angel or other Broking Site.

hi stocksplacement

yes legally they can charge different rates for penny stocks till the time they do not cross the maximum 2.5% limit.

regards

Anurag

basfrnt · #10 30th August 2010, 07:00 PM

Thank you for information